Goldman Sachs, Morgan Stanley Predict $150 Oil This Summer
First, it was legendary oilman Boone Pickens who uttered the obscenity. Now, Goldman Sachs and Morgan Stanley have joined in the chant. Reuters reported today that according to Jeffrey Currie, the global head of commodities research at Goldman Sachs, the price of crude oil is likely to reach $150 a barrel this summer as tighter supplies outweigh weakening demand. Currie told attendees at an oil and gas conference in Kuala Lumpur, Malaysia:
I would suggest that the likelihood of that happening sooner has increased tremendously… sometime in summer.
He added:
Demand for oil is weak but supplies are even weaker.
According to Reuters:
Goldman Sachs, the most active investment bank in energy markets and one of the first to point to triple-digit oil more than two years ago — a once unthinkable level — said last month oil could shoot up to $200 within the next two years as part of a “super spike.”
Last Friday, Morgan Stanley also predicted that the price of crude may reach $150 by July 4 due to significant demand from Asia along with falling inventories.
Source:
“Oil Is Likely to Hit $150 This Summer”
Reuters, June 9, 2008
June 10th, 2008 at 9:10 am
There’s also some recent talk about Oil being in a bubble, what with the rapid and high price increases we have been seeing.
Is it sustainable, or will Oil prices drop back down? We may still have a ways up to go, before this bubble pops.
But given the volatility of the Middle East, all it taked would be for an ‘incident’ there to cause Oil prices to spike over $200/bbl.
Any ideas about where Gold is headed?